Location: Reading, PA | Metro: Lancaster, PA MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,180 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,110 |
| 5 Bedrooms | $2,448 |
| 6 Bedrooms | $2,742 |
| 7 Bedrooms | $2,961 |
| 8 Bedrooms | $3,109 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,600 | $374,703 | 0.43% | F |
| 3BR | $2,000 | $430,439 | 0.46% | F |
| 4BR | $2,110 | $576,564 | 0.37% | F |
| 5BR | $2,448 | $959,637 | 0.26% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 17555 (Narvon, PA) on the axes of yield and stability reveals a nuanced picture for real estate investors. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,430, which is notably lower than the market rent of $1,833. This suggests that while there is potential for rental income above the FMR, the area does not inherently offer high yields through Section 8 alone.
On the stability axis, Narvon presents a mixed scenario. With only 11.9% of residents being renters, the market indicates low demand for rentals, which can translate into low stability. However, the median household income stands at $116,429, suggesting financial security among the population. Despite this positive income figure, the lack of data on the average number of days on the market (DOM) for rental properties implies uncertainty in how quickly units might be filled or turned over.
The median home value in Narvon is $470,145, which is relatively high but must be considered alongside the low rental rate percentage. This combination points towards a market that is more suitable for those seeking steady cash flow rather than high yield through rental income. The higher median home value and median income indicate a stable economic environment, but the low percentage of renters signals a less dynamic rental market.
In conclusion, ZIP 17555 is best classified as a steady-cashflow zone rather than a high-yield/low-stability flip-style market. Investors should focus on long-term strategies that leverage the stability of the local economy while acknowledging the limited rental demand.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.